Which of the following, if true, most weakens the argument for launching a private-label brand?
A) Success has been mixed for retailers that have already launched private brands.
B) Many national brands insist that retail stores stock the brand's entire product line.
C) Customers demand national brands when it comes to extremely expensive items.
D) Most of the brands that are available at Jenny's are easily found elsewhere.
E) Leading brands have substantially increased their ad budgets to implement pull strategies.
Answer: E
Explanation: E) Are leading brands worth it? If Choice E is true, then Jenny's could benefit from the pull campaigns of those brands, which would make private-label brands less attractive by comparison. So Choice E weakens the argument. Choice A doesn't tell us anything about Jenny's and doesn't make private brands sound better or worse. Choice B makes dealing with national brands sound worse, which makes private brands sound better. Choice C doesn't matter because retail clothing wouldn't qualify as an "extremely expensive" item. Choice D, if anything, makes existing brands sound like less of a competitive advantage for Jenny's.
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